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You are at:Home»Venture»SNAK Venture Partners raises $50 million in capital to support vertical acquisitions
Venture

SNAK Venture Partners raises $50 million in capital to support vertical acquisitions

techtost.comBy techtost.com7 February 202603 Mins Read
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Snak Venture Partners Raises $50 Million In Capital To Support
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SNAK Venture Partners announced Wednesday the closing of its oversubscribed $50 million debut fund, anchored by investment firm Pritzker Group (founded by Illinois Gov. JB Pritzker and his brother, Tony).

SNAK founders Sonia Nagar and Adam Koopersmith worked at the company and helped lead investments in companies such as auto marketplace Backlot Cars and TicketsNow (Ticketmaster outlet). The duo decided to strike out on their own and, earlier this year, launched their company to support digital shopping.

“I felt the timing was right and there was support from the company to do this,” Nagar said.

The vision is that there is still so much to digitize, such as in supply chain and manufacturing, and now is the time to strike, because even industries that no longer have a face are more comfortable to adopt new technology as the fintech architecture moves forward.

“If you look at the biggest venture wins in the last decade,” he said, pointing to companies like Uber, Instacart and Airbnb, “these are five of the top 10 business results.” As in those companies that raised billions from investors, went on IPOs and returned millions to them.

“Most of those wins have been to the consumer, which tends to be faster than big business,” Nagar continued. “We think there’s a ton of white space to double down and focus on B2B markets.” You are specifically looking for categories that have not yet been digitized.

The company has already invested in six companies, including Big Rentals and Repackify, which focus on equipment rental and packaging logistics, respectively. Nagar said the company hopes to write seed checks to at least 20 companies in total, with $1 million to $2 million each. He said they hope to develop the entire fund within the next 3 to 4 years.

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Although many new funds struggle to raise capital (and capital remains concentrated at the top), Nagar said she and Koopersmith were able to lean on their backgrounds when wooing LPs.

Nagar previously helped launch Amazon apparel in 2009 and was head of mobile at RetailMeNot. Koopersmith, meanwhile, spent 20 years at the Pritzker Group and serves on the board of various market firms. At the same time, Nagar said that without Pritzker’s support, it would have been very difficult to raise that capital, especially in last year’s environment.

Other LPs in their fund include the State of Illinois Growth and Innovation Fund and executives from other marketplace companies such as Favor Delivery and RetailMeNot.

Nagar said the company is also location-agnostic, acknowledging that the still-hidden markets may not just be in Silicon Valley and New York. “We’re finding these under-recognized founders in places where maybe other funds aren’t looking,” he said.

SNAK itself is based in Chicago, which he said some LPs have questioned. “People see it as a disadvantage; we see it as an advantage,” he continued. “We can reach everyone very quickly.”

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